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Monday, May 6, 2013

Oh oh, wine prices are heading up

As was predicted with a shortage of wine and increasing demand it was going to happen.

2012 saw an overall decrease in wine production mostly because Europe has a terrible season with the smallest crop in 50 years. Locally, the good news was California's crop size was way up with near perfect weather (after a few bad years).

A study reported in the L.A. Times said restaurants have upped their prices about 8% in the last few months. Besides the wine shortage this is probably another sign the recession is ending as businesses are beginning to feel they can finally raise prices.

The squeeze will be on the lower end of the market too, as the bulk wine folks have had it easy finding juice during the recession. Their sources are drying up. Even Two Buck Chuck is now $2.50!